Managing Risk in the Supply Chain SCM 309 Fall 2014 INTRODUCTION

Supply and supply chain risk refers to the probability of an uncertain or unpredictable event occurring that affects one or more of the parties within a supply chain. These events can negatively influence the achievement of business objectives. Risk has been present in supply chains as long as there has been someone looking to purchase goods and services and someone willing to sell them. Furthermore, it is widely accepted that risk will likely increase in most supply chains as businesses continue to expand globally. In fact, we could easily argue that many of the supply chain initiatives that are pursued today actually introduce risk. Lean manufacturing, just-in-time and reduced inventory, international purchasing, and increased outsourcing all can increase an organization’s exposure to risk. We should make no mistake about it: the complexity and relentless cost and performance pressures of today’s business environment only serve to remind supply managers that managing risk in the supply chain must be at the forefront of their agenda.

ASSIGNMENT OBJECTIVES

At the conclusion of this assignment, participants should recognize the importance of: * Understanding the concept of risk and its implications for supply strategies and supply chain processes * Developing a thorough understanding of the various approaches and practices used to manage risk in the supply chain * Identifying, categorizing, and prioritizing supply chain risks as part of a risk analysis plan

Commodity Risk Assessment Plan

The following provides